International manufacturers
US Expansion for International Manufacturers
Accounting and fractional CFO support for international manufacturers setting up US distribution: entity structure, US GAAP books, landed cost, transfer pricing coordination, Form 5472, sales tax and state compliance.
- Led by Nauman Poonja, CPA
- Manufacturing finance only
- A partner in every big decision
- Dallas–Fort Worth and nationwide
What's included
How we help international manufacturers in the US
US finance setup and bookkeeping
The accounting system, inventory at true landed cost and monthly books, with the US chart of accounts mapped to group reporting.
Monthly close and group reporting
US GAAP statements on a monthly close, and headquarters packages in the group's format, currency and timetable.
Cash and funding
Cash forecasts that cover the import cycle and parent funding, so the US company has the cash to operate.
Intercompany pricing and balances
A documented arm's-length pricing method agreed with advisors in both countries, and intercompany balances that tie out on both sides.
Your US compliance calendar
We keep the calendar, prepare the books and schedules every filing depends on, and coordinate the US CPA, attorneys and customs broker.
Fractional CFO
US pricing, margins by product, customer and channel after freight and duty, lender relationships and growth planning.
Is this a fit?
Which international manufacturers we help
We work with international manufacturers opening a US sales or distribution company. The common situations:
- You're choosing between a US subsidiary, an LLC, a branch or a distributor.
- Products will ship from the parent to the US company at a transfer price.
- The US company will hold inventory, employ staff or sell into several states.
- Headquarters needs monthly results in the group's format, currency and timetable.
- US lenders, customers or auditors expect US GAAP financial statements.
How we work
Your first year in the US
- 1
Structure and register
In the first two months, decide the structure with US tax and legal advisors and form the entity. Then set up the federal tax ID, state registrations, US bank account, payroll and a customs broker.
- 2
Agree intercompany terms
Before the first shipment, agree intercompany terms and pricing in writing, and set up the accounting system mapped to group reporting.
- 3
Map sales tax
From the first sale, map sales tax exposure by state and collect exemption certificates from customers.
- 4
Close every month
Close the books every month and report to headquarters.
- 5
Deliver year-end packages
At year end, deliver packages for the US CPA, transfer pricing advisor and group auditors.
The short answer
Opening a US sales or distribution company means getting four things right early: the structure, US-standard books, federal, state and sales tax compliance, and pricing between the parent and the US company. We set up and run the US finance function, report to headquarters in its format, and coordinate your US CPA, attorneys and customs broker.
Choose the right US structure
The entity you pick drives tax, liability and reporting for years. Your US tax advisor and attorney confirm the choice and form the entity; we model the cash and reporting impact of each option.
How money and goods flow
The price the US company pays the parent sets three things at once: where profit is taxed, how much duty is paid at the border, and whether the US company has cash to operate. Plan it before the first shipment.
Profits return to the parent as dividends, which may carry US withholding, often reduced by tax treaty.
Three rules we set up from day one: a documented, arm's-length pricing method agreed with advisors in both countries; intercompany balances settled on agreed terms (or formally documented as a loan or equity); and one invoicing currency with clear ownership of exchange risk.
Your US compliance calendar
A foreign-owned US company carries filings that domestic companies don't. Missing them is the most common and costly mistake we see.
| Requirement | Applies when | How often |
|---|---|---|
| Federal income tax return (Form 1120) | Every US corporation | Annual |
| Form 5472 | 25%+ foreign-owned corporation, or foreign-owned single-member LLC | Annual, with the return |
| Transfer pricing documentation | Any sales, fees, royalties or loans with the parent | Annual |
| State registration and income/franchise tax | Employees, inventory, offices or enough sales in a state | Annual |
| Sales and use tax | Physical presence in a state (staff, office or inventory), or sales into it above the state's threshold: often $100,000 a year, and in some states a number of transactions | Monthly to annual |
| Payroll taxes | Any US employees | Every payroll, quarterly |
| Customs entries and duties | Every import shipment | Per shipment |
| Beneficial ownership report | A foreign company registered directly in a US state (US-formed companies are exempt since 2025) | Once, then on changes |
We're not a CPA firm. We keep the calendar, prepare the books and schedules every filing depends on, and coordinate the people who file. See how we work with your CPA.
One set of books, two audiences
What headquarters gets
- Monthly results in the group's format, currency and timetable
- US chart of accounts mapped to group reporting
- Intercompany balances that tie out on both sides
- Margin by product, customer and channel after freight and duty
What US lenders, customers and auditors get
- US GAAP financial statements on a monthly close
- Inventory at true landed cost, reconciled to the warehouse
- A cash forecast covering the import cycle and parent funding
- Audit- and borrowing-base-ready schedules
More on each service: bookkeeping for manufacturers, outsourced controller, cash flow management and fractional CFO for manufacturers.
Based in Dallas–Fort Worth, supporting international manufacturers with US operations anywhere in the country. Related: consumer electronics importers.
Frequently Asked Questions
Should an international manufacturer use a US subsidiary or a branch?
Most use a US subsidiary, usually a corporation, because it separates US liability and tax from the parent. A branch can make sense in specific cases. The choice depends on your home country's tax rules and its treaty with the US, so make it with tax advisors in both countries.
What is Form 5472 and who has to file it?
It reports transactions between a US company and its foreign related parties, such as product purchases, loans and fees. It applies to US corporations that are at least 25% foreign-owned and to foreign-owned single-member US LLCs. The penalty for not filing is $25,000 per form per year.
Do we have to collect US sales tax?
Possibly in many states. A state can require you to collect if you have a physical presence there, such as employees, an office or inventory in a warehouse. It can also require it based on sales alone: most states set a dollar threshold, often $100,000 a year, and some also count the number of transactions. Sales to resellers and many manufacturers can be exempt with valid exemption certificates.
How should we price products sold from the parent to the US company?
At arm's length, using a documented method agreed with tax advisors in both countries before the first shipment. The price affects US income tax, customs duties and the US company's cash, so plan for all three.
Are you a CPA firm? Who files our US tax returns?
No. We run the US accounting and finance function and prepare the books and schedules the returns depend on. A US CPA firm prepares and files the returns, and attorneys form the entity. We coordinate them and can introduce firms with international manufacturing experience.
Can you report to our headquarters in our format?
Yes. We map the US chart of accounts to your group reporting, deliver monthly results on your timetable and in your reporting currency, and reconcile intercompany balances so consolidation ties out.
Further reading
- IEEPA Tariff Refunds: How Manufacturers Should Account for Them
- State Tax Nexus for Manufacturers: Triggers & Compliance
- Transfer Pricing for Multi-Entity Manufacturers | Basics
- Supply Chain Finance & Tariffs: What Manufacturers Must Know
- Duty Drawbacks Explained: Reclaim Tariff Costs
- Tariff Scenario Planning: Model Financial Impact Early
Get a finance partner in your corner
Book a free 30-minute call. We'll talk through your cash, your margins and the decisions ahead, as a partner, not just your accountant.